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This paper investigates the relation between stock liquidity and firm performance. We find that firms with liquid stocks have better firm performance as measured by the market-to-book ratio. This result holds even when we include industry or firm fixed effects, control for idiosyncratic risk,...
Persistent link: https://www.econbiz.de/10005509810
This paper investigates the relation between stock liquidity and firm performance. The study shows that firms with liquid stocks have better performance as measured by the firm market-to-book ratio. This result is robust to the inclusion of industry or firm fixed effects, a control for...
Persistent link: https://www.econbiz.de/10005067194
Persistent link: https://www.econbiz.de/10005376860
Miller [1977. Risk, uncertainty, and divergence of opinion. Journal of Finance 32, 1151-1168] hypothesizes that prices of stocks subject to high differences of opinion and short-sales constraints are biased upward. We expect earnings announcements to reduce differences of opinion among...
Persistent link: https://www.econbiz.de/10005067214
We examine how certain firm- and market-specific characteristics affect incumbent firms' responses to new entry into their local markets. Data comes from the discount department store industry where Wal-Mart entered a large number of markets in a short period of time. Consistent with existing...
Persistent link: https://www.econbiz.de/10005564014
We study whether differences in access to credit cause focused firms to perform differently from diversified firms in the product market. Prior work has identified binding credit constraints for bank-dependent firms during recessions. We assess whether corporate diversification alleviates these...
Persistent link: https://www.econbiz.de/10005564143
The diversification discount (multiple segment firm value below the value imputed using single segment firm multiples) is commonly thought to be generated by agency problems, a lack of transparency, or lackluster future prospects for diversified firms. If multiple segment firms have lower...
Persistent link: https://www.econbiz.de/10008488786
This paper links the impending vesting of CEO equity to reductions in real investment. Existing studies measure the manager's short-term concerns using the sensitivity of his equity to the stock price. However, in myopia theories, the driver of short-termism is not the magnitude of incentives...
Persistent link: https://www.econbiz.de/10010951061
This paper investigates the relation between stock liquidity and firm performance.  We find that firms with liquid stocks have better firm performance as measured by the market-to-book ratio.  This result holds even when we include industry or firm fixed effects, control for idiosyncratic...
Persistent link: https://www.econbiz.de/10011004362
This paper studies the effect of stock liquidity on blockholders' choice of governance mechanisms. We focus on hedge funds as they are unconstrained by legal restrictions and business ties, and thus have all governance channels at their disposal. Since the threat of governance, not just actual...
Persistent link: https://www.econbiz.de/10009359911